Analyst Downgrades Synchrony Financial Despite Raising EPS Estimate: Here's Why
Portfolio Pulse from Lekha Gupta
Oppenheimer analyst Dominick Gabriele has downgraded Synchrony Financial (SYF) to Perform from Outperform, despite raising the FY24 EPS estimate to $4.54 from $3.61. The downgrade is due to a short-term dislocation in the market and expected pressured volumes. The analyst also cut the estimate for the NCO rate to 6.81% from 7.06% and raised the 2023 EPS estimate to $5.39 from $5.02.
July 14, 2023 | 4:53 pm
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Synchrony Financial's rating has been downgraded by Oppenheimer due to a short-term market dislocation, despite an increase in the FY24 EPS estimate. The stock is expected to face pressure in the short term.
The downgrade by Oppenheimer, a significant market influencer, is likely to negatively impact investor sentiment towards SYF in the short term. Despite the raised EPS estimate, the downgrade and the expected pressured volumes indicate potential short-term challenges for the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100